Sydney Airport profit climbs on all fronts

SYDNEY Airport expects strong passenger growth to continue with
the introduction of new carriers and bigger planes, after its
operator yesterday posted an 11.6 per cent lift in full-year
earnings.

Southern Cross Airports Corporation, which is majority-owned by
Macquarie Airports, said earnings before interest, tax,
depreciation and amortisation rose by 11.6 per cent to $584.66
million in fiscal 2007.

Operating revenue rose by 9.9 per cent compared with last
financial year to $724.6 million, while operating expenses
including specific non-recurring expenses increased by 5.6 per cent
to $143 million.

The corporation attributed the gain to increased revenue from
its commercial operations such as expanded retail and parking, and
stronger passenger numbers.

With the newly redeveloped T2 domestic terminal and introduction
of new carriers and bigger planes, that growth would continue, said
Sydney Airport Corporation's chief executive, Russell Balding.

The airport saw a 6.4 per cent rise in passenger traffic,
spurred by the introduction of new carriers such as Etihad Airways
and Jetstar's international services.

"Strong growth in earnings this financial year has been
underpinned by a range of commercial initiatives and robust growth
in passenger volumes," Mr Balding said.

Revenue rose in the aeronautical and non-aeronautical
sectors.

Aeronautical revenue grew by 9.3 per cent to $294.1 million,
attributed to international and domestic passenger growth, while
non-aeronautical revenue was driven by growth in the retail
business, which jumped by 8.3 per cent to $168.84 million.

Mr Balding said growth across all facets of the business would
continue as the full effect of the redeveloped T2 terminal, which
opened in April, was felt and as traffic numbers continued to
grow.

A multi-storey car park providing about 3000 spaces would be
completed in 2008, while parking options such as long-stay and
valet parking would have a growing effect, he said.

"We invested $20 million into T2, and the results of that were
bearing fruit towards the end of the financial year, and we expect
the last quarter results to continue through," he said, referring
to the 10.4 per cent jump on the fourth quarter 2006 results.

"We've got new services coming in from Jetstar in 2007, Viva
Macau arrives here in August. And, of course, Singapore Airlines is
set to introduce the A380 on the Singapore-Sydney route later this
year."

A CommSec analyst, Cassandra Meagher, said the scope for
development of the international and Qantas domestic terminals
boded well for Sydney Airport.